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Essay

Fed

Essay specific features

 

Issue:

Business

 

Written by:

Denise B

 

Date added:

June 13, 2014

 

Level:

University

 

Grade:

A

 

No of pages / words:

1 / 263

 

Was viewed:

691 times

 

Rating of current essay:

 
Essay content:

If economic growth is considered to be undesirably rapid, the Fed will undertake a restrictive monetary policy with the goal of slowing economic growth and dampening inflationary pressures. If economic growth is considered to be undesirably slow or the economy is in a recession, the Fed will undertake an expansionary monetary policy with the goal of accelerating economic growth and lowering the unemployment rate...
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Falling interest rates increase consumption. The "new" money created by the Fed is lent out or invested by financial institutions and finds its way into the economy. This will decrease private savings by decreasing incentives to save. Also during a severe recession when there is little demand for goods and services...
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General issues of this essay:
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